China Underground > China Finance > Huawei says it will run out of processors chips for its smartphones by September under US sanctions

Huawei says it will run out of processors chips for its smartphones by September under US sanctions

Last Updated on 2020/08/10

Huawei, the Chinese tech giant, may have run out of stock of chips needed to run its smartphones within a month, according to a report released by Associated Press.

US sanctions, wanted by the Trump administration, have blocked Huawei from using Google services and other components produced in the United States, which are essential for the functioning of modern smartphones.

Huawei is one of the world’s largest manufacturers of smartphones and network equipment and is at the center of a complex battle between the United States and China over security. The diatribe has also expanded in recent days to include the popular Chinese app TikTok, the WeChat messaging service, and the other electronic entertainment giant Tencent.

In May, the White House increased sanctions against Huawei, preventing Huaweei from accessing American-made components.

In the meantime, Washington convinced European and other allies to exclude Huawei from the realization of the next-generation networks due to security reasons.

Production of the Kirin chips developed by Huawei will end on September 15, since American components are required to make them, and Huawei is unable to produce them.

According to Huawei, the production of smartphones will therefore cease next month, if the situation does not change in the meantime.

Huawei was founded in 1987 by a former Chinese military engineer. The company has always denied facilitating Chinese espionage. Chinese officials accused the United States of using the national security issue to hinder a competitor.

Huawei has 180,000 employees, and is a leading technology research center with a turnover of $ 15 billion a year.

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